Analyst Robert Ford from Bank of America Securities maintained a Buy rating on BBB Foods, Inc. Class A (TBBB – Research Report) and keeping the price target at $40.00.
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Robert Ford has given his Buy rating due to a combination of factors that suggest a promising future for BBB Foods, Inc. Class A. The company has announced a significant secondary offering which will increase its market float and improve liquidity, moving the ownership from pre-IPO shareholders and potentially reducing the $1.3 billion overhang at current prices. This move is expected to enhance trading volume and investor interest.
Moreover, the company reported a notable acceleration in year-end sales, exceeding forecasts with a growth rate of about 32-33% year-over-year for the fourth quarter of 2024. Although there were non-recurring expenses related to its IPO and compliance obligations, these are not expected to have a long-term negative impact. The long-term outlook remains positive, with opportunities for expansion and innovation as TBBB continues to grow its store footprint and consumer base. Despite some short-term concerns, these factors collectively support a Buy rating with a price objective of 40.00 USD.